Automated Strategies

Zone Trader

Developer: FXCM

Think the market is headed for a reversal? Time to get in the zone!

When the price moves fast, Zone Trader keeps you where you’re most comfortable.

Zone Trader is an automated strategy that allows you to designate a price zone. Once price reaches your zone, specified by an upper and lower price band, an entry order is created, which stays in the market until triggered. If the price leaves your zone before execution, your order is cancelled.

First pick the direction of the trade: buy or sell. Many traders look to pre-identify entry zones and then look to enter or exit a position depending on the movement in price.

Next, create your zone by choosing a zone price and an invalidation price. The strategy will create an entry order when the market price first crosses the zone price. The strategy will cancel the associated entry order if the price crosses the invalidation price.

Note: Buy Trades usually have invalidation price at a lower level than zone price. Likewise, sell trades have an invalidation price at a higher level than zone price.

Lastly, set the entry order price, any stop loss and take profits, and start the strategy. Once the entry order is triggered or deleted because it reached the invalidation price, the strategy shuts off and will not send any more orders.

PARAMETERS

The following inputs are available in the app’s parameters window and can be defined by the app user:

  • Lot Size: The size of the entry order
  • Direction: Buy or Sell
  • Zone Price: The price that validates the entry order
  • Entry Price: The price that triggers the entry order
  • Invalidation Price: The price that invalidates and cancels the entry order
  • Take Profit: Number of pips to reach for profit
  • Stop Loss: Number of pips to reach for loss
  • Magic Number: Unique identifier for positions generated by this strategy
  • Debug: Yes or No
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This strategy is only compatible with FXCM’s Trading Station Desktop. Additionally, an FXCM account is required (including free FXCM demo accounts).